ETFs in Focus: Expert Insights on Market Trends and Innovation

Thrivent announced the conversion of Thrivent Mid Cap Value Fund and Thrivent Core Small Cap Value Fund into exchange-traded funds (ETFs) – demonstrating the company’s commitment to delivering competitive, client-focused investment solutions. 

Below, Michael Kremenak, Thrivent Mutual Funds president, shares a deeper dive on ETFs and Thrivent’s perspective on the evolving landscape, what is behind these conversions, and the role of ETFs in building investment portfolios.

Q: What motivated Thrivent to convert mutual funds into ETFs at this time, and how does this reflect broader trends in the investment industry?
Michael: We’re always looking for ways we can deliver value to our clients through innovative investment solutions. The ETF market is experiencing rapid growth and significant client interest: they now make up more than a third of the U.S. fund market with over $10.7 trillion in assets. Expanding our ETF lineup helps us meet this growing demand and use Thrivent’s expertise to help our clients achieve their financial goals.

With these ETF conversions, we’re adding another strong investment option alongside our mutual funds. We’re offering clients flexibility, tax efficiency, and portfolio diversification – all aligned with our long-term investment philosophy and active management approach.

Q: What are the main advantages of exchange-traded funds (ETFs) for today’s investors and financial advisors?
Michael: ETFs have emerged as an investment vehicle that gives investors another way to build a diversified portfolio. They often have lower costs and offer intraday trading and potential tax advantages – all in a single investment vehicle.

ETFs can help create a well-rounded portfolio with exposure across different asset classes. Investors can work with a financial advisor to find the right mix based on individual goals and risk tolerance.

Q: How does Thrivent’s approach to active management influence the design and management of its ETFs?
Michael: We believe active management can deliver competitive, long-term performance. Across our ETFs and mutual funds, our portfolio managers are grounded in bottom-up stock selection, research, portfolio construction and risk management.

Unlike passive strategies that may simply track an index, active management involves making informed decisions based on deep research and market insights. When investors choose these funds, they’re tapping into the expertise of seasoned managers who bring years of experience across different market environments and cycles.

Q: What should investors consider when evaluating whether an ETF is a good fit for their financial goals?
Michael: It all comes down to individual goals and what investors want to achieve. With ETFs, here are a few things to look at:

• Liquidity: ETFs trade throughout the day, so intraday flexibility may be important.
• Costs: Look at expense ratios and any brokerage fees—ETFs often have lower costs than other options.
• Tax efficiency: ETFs typically generate fewer taxable events compared to mutual funds.
• Portfolio fit: Investors should think about how an ETF complements existing holdings and adds diversification.

A financial advisor can help evaluate these factors and determine whether an ETF or mutual fund solution best aligns with an investor’s objectives and risk tolerance.

Q: What role does innovation play in Thrivent’s investment strategy, especially regarding new fund structures like ETFs?
Michael:  Our innovation strategy is focused on creating smart investment solutions that help clients achieve their financial goals. We’re packaging our investment capabilities into products that meet market demand—starting with mutual funds and expanding into newer structures like ETFs.

For example, our Thrivent Ultra Short Bond ETF and Thrivent Core Plus Bond ETF highlight our strengths in fixed income. Thrivent Small-Mid Cap Equity ETF, along with our newest ETFs—the Thrivent Mid Cap Value ETF and Thrivent Small Cap Value ETF—leverage our deep experience in managing small- and mid-cap strategies.

If you’d like to speak to Michael Kremenak or an ETF specialist about ETFs, please contact us at mediarelations@thrivent.com. 

About Thrivent 
Thrivent is a Fortune 500 financial services company that helps build, grow and protect financial well-being through purpose-driven advice, investments, insurance, banking and generosity programs. Thrivent serves more than 2.4 million clients through thousands of financial advisors across the country and has more than $194 billion in assets under management/advisement (as of 12/31/24). Thrivent carries strong financial ratings from independent rating agencies - including AM Best, Moody's and S&P Global Ratings - which demonstrate the company’s financial strength, stability and ability to pay claims. Ratings don't apply to investment product performance and more information can be found on each rating agency's website. For more information about Thrivent, visit Thrivent.com or find us on Facebook, Instagram and LinkedIn.  

Dividends are not guaranteed and are exclusively available on eligible Thrivent products. Policy enhancements refer to improvements in nonguaranteed policy features such as future credited rates or fees. These enhancements are not guaranteed in the future.

Investing involves risks, including the possible loss of principal. The prospectus and summary prospectus contain more complete information on the investment objectives, risks, charges and expenses of the fund, and other information, which investors should read and consider carefully before investing. Prospectuses and summary prospectuses are available at thriventETFs.com or by calling 800-847-4836.

Prior to close of business on 11/14/2025, Thrivent Mid Cap Value ETF & Thrivent Small Cap Value ETF operated as open-end mutual funds with the same investment objective, strategy, and investment adviser. The mutual funds’ inception date was 02/28/2020 and 03/31/2022, respectfully.

ALPS Distributors, Inc., member FINRA, is the distributor for Thrivent ETFs. Thrivent Distributors, LLC is the marketing agent and asset management services are provided by Thrivent Asset Management, LLC, an SEC-registered investment adviser. Thrivent Distributors, LLC and Thrivent Asset Management, LLC are subsidiaries of Thrivent, the marketing name for Thrivent Financial for Lutherans. ALPS Distributors, Inc. is not affiliated with Thrivent or any of its subsidiaries.

Thrivent is the marketing name for Thrivent Financial for Lutherans. Insurance products issued by Thrivent. Not available in all states. Thrivent.com/disclosures.